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Germany's three major car companies have been confirmed to have monopolistic behavior, or have been imposed huge fines

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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According to foreign media reports, the European Commission has formally accused Volkswagen, Daimler and BMW of colluding to limit clean emission technology and illegally monopolizing clean technology for diesel engine exhaust emissions.

Three major groups, including Mercedes-Benz, Audi, Volkswagen, Porsche and BMW, were involved, and the European Commission pointed out that they colluded to take measures to delay the introduction of two emission cleaning systems between 2006 and 2014. this is a violation of monopoly rules. The European Commission also said the move limits innovative competition for emission cleaning systems and deprives consumers of the opportunity to buy cars that are less polluting.

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According to the regulations, once the monopolistic behavior is proved, the EU will impose a fine of 10 per cent of the annual turnover, which will reach 390 billion yuan according to statistics. As Volkswagen and Daimler actively cooperate with the EU investigation and acknowledge the monopoly facts, Daimler is expected not to be fined. Daimler is also a witness in the investigation, but BMW has repeatedly stressed that it is not involved in the monopoly door and denies all allegations of monopoly.

The largest monopoly in the history of the German automobile industry was exposed in July 2017. At the time, the European Commission issued a statement saying antitrust regulators had received a tip that the carmakers were suspected of monopolizing parts, prices and related technologies.

German auto giants Volkswagen, Daimler and BMW have colluded for 20 years to coordinate activities related to automotive technology, costs, suppliers and diesel engine emission control, Der Spiegel reported.

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Subsequently, the German cartel authorities confirmed that there was evidence of collusion among these companies. According to its information, about 60 working groups of Volkswagen, Daimler and BMW have been in secret contact since 1990 and have held more than 1000 "secret meetings" between 2012 and 2017. to reach consensus on certain "resolutions"-even suspending competition with each other for some reason, and often ignoring the recommendations of their legal departments.

Soon after, Volkswagen and Daimler admitted to the German government that their actions may have violated antitrust laws, hoping to reduce fines through voluntary disclosure. BMW said its regular talks with Volkswagen and Daimler were aimed at improving clean technology for diesel engine emissions, not "secret talks".

In September 2018, the European Commission launched a formal investigation into whether German automakers BMW, Daimler and Volkswagen colluded to monopolize each other.

After seven months of investigation, the EU has evidence to accuse the three groups of monopolistic behavior, and it is not clear whether to hold them accountable or fined.

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